Picture credits: Trans Maldivian Airways
Maldives: Blackstone, the world’s largest private equity firm, is reportedly close to reacquiring Trans Maldivian Airways (TMA) in a deal valued at approximately $500 million. This comes eight years after Blackstone sold its majority stake in the airline to a consortium led by Bain Capital and Shenzhen Tempus Global Business Services Holdings.
A Full-Circle Investment
Blackstone originally invested in TMA in 2013, acquiring both Maldivian Air Taxi and Trans Maldivian Airways before merging them to form the world’s largest seaplane operator. The firm’s initial investment was approximately $98 million. By 2017, it sold its stake for $500 million, marking one of its most significant exits in the Asian market.
According to The Economic Times, Blackstone is now in advanced talks to repurchase TMA at nearly the same price it sold it for, bringing its investment full circle.
Financial Struggles Under New Ownership
Bain Capital and its Chinese partners acquired TMA at a time when the Maldives’ tourism industry was booming, particularly in the luxury segment. The airline’s business model revolves around transporting high-end tourists from Malé-Velana International Airport (MLE) to luxury resorts across the Maldives’ 1,000-plus islands.
However, the COVID-19 pandemic disrupted international travel, causing a sharp decline in tourist arrivals. The financial strain led the Bain-led consortium to default on a $305 million loan used to purchase TMA. This resulted in the airline’s lenders, including The Carlyle Group, taking control of the business under a debt restructuring agreement.
Reports suggest that while the current owners initially aimed to sell TMA for around $700 million, market volatility and ongoing financial challenges have led them to consider Blackstone’s offer instead.
About Trans Maldivian Airways
Picture credits: Trans Maldivian Airways
Trans Maldivian Airways is the largest seaplane operator and a critical part of the Maldives’ tourism industry. The airline specializes in transferring tourists from the main international gateway in Malé to luxury resorts across the archipelago. With no domestic scheduled flights, TMA’s seaplane services are the primary mode of transport for high-end travelers reaching remote island destinations.
The airline operates a fleet of 65 De Havilland Canada Twin Otter aircraft, one of the largest amphibious aircraft fleets in the world. It conducts more than 400 flights per day and serves over 80 resorts across 16 atolls, making it an essential link in the Maldives’ tourism ecosystem.
Tourism Recovery Fuels Blackstone’s Interest
With global tourism rebounding, the Maldives has seen a surge in tourist arrivals, boosting demand for inter-island air travel. TMA operates a fleet of 65 De Havilland Canada Twin Otter aircraft, conducting more than 400 flights per day and serving over 80 resorts across 16 atolls.
Blackstone’s potential return to TMA highlights its confidence in the recovery of the luxury travel market. If the deal is finalized, Blackstone will regain control of the world’s largest seaplane operator, reaffirming its long-term strategic interest in the aviation and hospitality sectors.
An official confirmation from Blackstone and TMA is still awaited.
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